Yet another lawyer wants to enter Stanford case

MARY FLOOD, Copyright 2010 Houston Chronicle |
June 3, 2010

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Jailed businessman R. Allen Stanford, who faces 21 criminal charges and has been through multiple defense lawyers, asked Thursday that yet another attorney be the one who picks his jury and tries his case.

At a hearing in a federal court filled with more than 20 lawyers who have or are currently representing Stanford in various matters, Las Vegas criminal defense lawyer David Chesnoff introduced himself as the man Stanford now wants to defend him in trial.

Stanford has said he is innocent of the charges pending against him in what the government claims was a $7 billion Ponzi scheme involving his Houston-based Stanford Financial Group and certificates sold through a company bank on the Caribbean island of Antigua.

Stanford, who has already run through some of the best criminal defense lawyers in Houston, has at least on paper settled on Houston-based Robert S. Bennett — who touted himself mostly as a consumer lawyer before Stanford tapped him as his lawyer in the criminal case.

U.S. District Judge Nancy Atlas asked why Stanford needs another lawyer when he has Bennett.

“I'm more well-known,” Chesnoff joked.

Chesnoff also said Stanford has trust in Bennett, but needs an experienced criminal defense attorney to handle the case.

Atlas is overseeing a case in which Lloyd's of London is asking not to pay any more legal fees for Stanford and his co-defendants. Stanford Financial Group had an insurance policy with Lloyd's covering legal claims against its executives. The judge, who had called the lawyers together to sort out who has done what so far, expressed some concern that Bennett may be duplicating efforts.

Atlas said it will be up to U.S. District Judge David Hittner, who is overseeing the criminal case, to decide whether Chesnoff joins Stanford's team.

Atlas, who had previously said in court that she favored Stanford's release on some kind of bail, also made it clear that any decision on that is also Hittner's. Hittner has refused bail for Stanford, finding he's a flight risk.

Hittner also told Stanford, when he fired his last two criminal defense lawyers in April, that he would not be allowed to switch again.

Bennett and Stanford complained to Judge Atlas that the Lloyd's underwriters have refused to pay any of Bennett's bills, though they've paid criminal defense counsel for Stanford's co-defendants so far. In one filing, Stanford wrote that Bennett will quit this week if he's not paid.

Bennett submitted bills for himself and those working with him. They included $250 an hour for bringing civilian clothes to Stanford for a hearing in April, although federal prisoners aren't allowed civilian clothes for hearings. Another charge was for working on a list for pre-trial depositions though federal criminal cases don't include depositions.